Growth in industrial manufacturing

Kuwait

Houssam Dennaoui, deputy CEO of Alam Steel Industries Company, talks to The Energy Year about the company’s contributions to Kuwait’s economy and the main challenges in the fabrication market. Alam Steel Industries Company is a Kuwaiti company that manufactures truck and trailer mounted products, as well as general steel works to high technology products used in various applications.

What is Alam Steel’s contribution to the Kuwaiti economy?
Alam Steel’s core business is the fabrication of steel. We have a 20,000-square-metre [215,278-square-foot] plant in Sulaibiya, where we manufacture steel superstructures, wheeled trailers, truck-mounted and stationary tanks, and silos. Our products support the oil and gas, construction and logistics sectors. We are known as one of the oldest suppliers to all companies involved in projects for the K-companies, providing them with the highest-quality steel structures. For example, we provide regular and advanced vacuum tanks used in refineries as well as mixing tanks and mud trailers for oil field companies.
At its current capacity, our fabrication yard can produce 60-80 units per month working a single shift. We can add up to another 60% with a second shift, reaching about 120 units per month. Our strength comes from our machinery, we devote many resources to keeping it up to date. It is a state-of-the-art facility. We use the latest welding techniques and automation systems, which help us increase productivity and make production faster. It is a game of efficiency, we can adapt our capacity to market fluctuations.

What is the main challenge for the company to grow further in Kuwait’s fabrication market?
To become a more prominent player in the market, we are in the process of becoming API and ASME-certified.
Obtaining these certifications requires larger investments on our side. For this to be economically feasible for us, the K-companies need to launch more projects so that the market shapes up and we can gain a share of it. It would be highly beneficial for the country, and having these certifications is crucial to carrying out specific projects and serving local partners.
Inability to meet industry requirements is a reason why Kuwait still imports a significant portion of industrial products, preventing the country from catching up with other more advanced industrial manufacturing markets in the region.
The Kuwait Vision 2035 initiative is promising. There is a clear intention on the part of the government to implement more projects and support Kuwait’s industry in regaining its international standing. In the 1970s, 1980s and 1990s, most industrial products distributed across GCC countries were, in fact, manufactured in Kuwait.
Sustained by government initiatives to reshape this trend, I am confident that in the next 3-5 years we will be able to put out an excellent local product that is up to international standards. Ultimately, we will be able to build a Kuwaiti product and acquire a significant market share in neighbouring countries.

What is Alam Steel’s plan to expand its footprint across the GCC area?
Alam Steel has offices in Qatar and Abu Dhabi. We do not fabricate there, but we support these markets with extensive after-sales services. We have plans to expand into Saudi Arabia by establishing a manufacturing facility there. We are already working on a project that is still in its early stages. We will probably enter into a JV to expedite it. Saudi Arabia is a unique market compared to other GCC countries. Saudi Arabia’s Vision 2030 plan positions the country to become a great nation in terms of manufacturing and the energy sector.

What steps does Alam Steel intend to take to stay in line with industry trends?
Keeping abreast of the latest technological developments in the industry is always on our radar. The adoption of new technologies helps reduce the amount of steel used and increases productivity. Our R&D team always works proactively on this also through collaboration with international manufacturers. The industry is setting ever-higher requirements and new technological standards. Our goal is to keep up with the trends and bring expertise and top-notch technologies into Kuwait.
This year, we also expect many awards for upcoming projects, which will significantly increase our pipeline compared to previous years. Looking at the long term, expansion into Saudi Arabia and obtaining the ASME and API certifications are our key objectives.

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